REIMAGINE YOUR BUSINESS

National Productivity and Competitiveness Council

GUIDELINES FOR BRINGING INNOVATION TO YOUR BUSINESS MODEL

MODULE 8

ENTERPRISE RESPONSE TO COVID-19

REIMAGINE YOUR BUSINESS

Anou evit covidwww.npccmauritius.org/eps

© National Productivity and Competitiveness Council2 Anou evit covid

Innovation for Business RecoveryCOVID-19 has presented various challenges for businesses. These challenges are opportunities for innovation and creativity. You

can adapt your existing business model creatively to meet the current needs of the market or re-invent the entire business model

to create an entirely new business.

An improved or new business model should be integrated into your Business Recovery Plan. The innovation of your business model

requires that you have a dedicated team working on the new business model and the characteristics of your innovation team

should be that they accept the following challenges while implementing the business continuity plan:

(i) resistance to change,

(ii) decision-making limits,

(iii) the limitation of your team members to be creative thinkers.

Therefore the composition of the innovation team is the key to getting innovative ideas for your business recovery plan.

Other questions to consider are:

• What are the key lessons learnt during the Covid19-crisis?

• Do they help you to review your business model?

• Which business segment can you improve upon?

• In which area can you innovate?

Tips: Use Design Thinking along with SCAMPER to generate new possibilities for your business.

• What are your future plans?

• How can you keep your staff engaged in defining different scenarios for your business model?

• How can you convert the identified new business model into your business recovery plan?


The tool to assist in the brainstorming session on reimagining your business model is the Business Model Canvas

(BMC), the template can be downloaded from www.strategyzer.com. BMC can be used to represent the actual

business model of your business. The BMC consists of nine building blocks namely: (1) Customer segments, (2)

Value Propositions, (3) Customer Channels, (4) Customer Relationship, (5) Revenue Streams (6) Key resources (7) Key

activities (8) Key Partnerships (9) Cost Structure.

Figure 2 - Business Model Canvas (Source: www.strategyzer.com)

The Worksheet is annexed and can be downloaded

The Business Model Canvas

DesigneD by: Strategyzer AGThe makers of Business Model Generation and Strategyzer

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:

http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

strategyzer.com

Revenue Streams

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

ChannelsKey Resources

The process for Reimagining your business model by your team is as follows:

1. Map your business model using the Business Model Canvas.

2. Using empathy, identify the business building block where you are facing problems.

3. Define the problems as linked to the value propositions in your actual business model.

4. Ideate to create the maximum number of possible business models (use SCAMPER) - (Up to 10 if possible).

5. Use a set of criteria to prioritise the best business models (select at least 3 business models) - Priority Matrix - Impact v/s Feasible.

6. Test the best models with a sample customer on paper prior to implementation.


Map your business model using the BMCUsing the BMC template at www.miro.com, your team can map your actual business model

as shown below:

An example of the business model of a small retail store XYZ is as shown below:

1.

Figure 3 - BMC - Key Questions for each business building block (Source: strategyzer.com)

Figure 4 - Example of Business Model Canvas for Store XYZ


Using empathy, identify the business building block where you are facing problemsWhen viewed from the customer perspective in a crisis period such as COVID-19, and by

using empathy we can see business segments where there are pains and gains for the

customers.

For instance, for store XYZ, the pains are:

(1) Customers have restricted access to the store.

(2) They are not willing to queue up at the store for long hours.

The gains are:

(1) XYZ provides quick service

(2) the location is within reach.

2.

Figure 5 - Example of a pain point for Store XYZ


Define the problems as linked to the value propositions in your actual business model

Ideate to create the maximum number of possible business models (use SCAMPER) - (Up to 10 if possible)

The key problem related to the BMC of XYZ company is:

Customers need a way to procure their favourite products and accessories from XYZ so that

they can avoid being physically present at the store and enjoy a quick service delivery of

their products and accessories.

With the problem clearly defined, XYZ team has to ideate to create different business

models. Changing one business model building block can result in an entirely new business

model. SCAMPER can be used as a tool for generating maximum ideas.

3.

4.

Figure 6 - SCAMPER

(Source: https://www.superfastbusiness.com/business/541-scamper-business-

idea-creation-made-simple/)


Use a set of criteria to prioritise the best business models (select at least 3 business models) - Priority Matrix - Impact v/s Feasibility

5.

Figure 7 - Priority Matrix for choosing the best BM with highest Feasibility and highest Impact

Highest Feasibility

Highest Impact


Test the Best Model

Your Business Recovery Plan

6.

Figure 8 - The best BM, BM5, for the XYZ company

Figure 9 - Gantt Chart for the Business Recovery Plan

The one with high feasibility and high impact - BM5 in the case of store XYZ, which included

a digital platform to enable its customers to do online shopping and benefit from home

delivery of products and accessories. The idea was first tested with a few customers on

paper. Implementation required investment of resources as per the business model canvas.

Finally, your business recovery plan will consist of the improved business model using the

BMC or the best BMC resulting from internal brainstorming. A Gantt chart is a tool which can

be used to translate your new BMC into an actionable plan.

Highest Feasibility

Highest Impact


The following case studies give examples of innovation in a few small enterprises

Figure 10 - Mary Grant

(source:https://www.entrepreneur.com/article/349066)

Figure 11 - Brewdog

(Source: Twitter)

Case 1: Ecommerce

Mary Grant, a fashion designer, had to close her stores.

Three weeks into lockdown, she had moved 50 percent of her

regular combined revenue from the physical retail stores into

ecommerce. She has run an online “wardrobe challenge,”

which has seen an increase in website traffic of over 1,200

percent.

Case 2: Sanitizer

Brewdog, a multinational brewery has transformed its

distillery in a bid to help with the shortage of hand sanitisers,

by creating a new one for giveaways to those in need. This

gives a multiplier effect on its brand name and visibility while

building trust and connecting with its customers.


The following case studies give examples of innovation in a few small enterprises

Figure 12 - Virtual Birthday Parties

(Source: https://www.entrepreneur.com/article/349066)

Case 3: Virtual Birthday Party

Ricky Fox, co-owner at Captain Fantastic, is one of the UK’s top children’s-party entertainment

companies. Their team went from doing 200 physical kids parties a month to absolutely zero.

Within a week, the team switched everything online and launched virtual birthday parties,

playdates and live shows. Their online following has grown from 3,000 followers to over 50,000

within a few days of launch, and their online events have already reached over three million

people.

The NPCC can facilitate the discussions for the modules where you need us most. We can arrange for online discussions and group work.

Contact us

[email protected]

Anou evit covid

National Productivity and Competitiveness Council3rd Floor, The CatalystSilicon Avenue, CybercityEbene 72201Republic of MauritiusT: (230) 467 7700 F: (230) 467 3838E: [email protected]

www.npccmauritius.org/eps

The Business Model Canvas

DesigneD by: Strategyzer AGThe makers of Business Model Generation and Strategyzer

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:

http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

strategyzer.com

Revenue Streams

Customer SegmentsValue PropositionsKey ActivitiesKey Partners

Cost Structure

Customer Relationships

Designed by: Date: Version:Designed for:

ChannelsKey Resources

Gain Creators

Pain Relievers Pains

Gains

Products& Services

CustomerJob(s)

Value Proposition Customer Segment

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer

The Value Proposition Canvas

strategyzer.com

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REIMAGINE YOUR BUSINESS